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Outlook

Outlook 2018 and ambition 2020

Following the announcement to divest Nexive and Postcon, the business lines Nexive and Postcon will be classified as discontinued operations as of Q3 2018, resulting in:

  • adjusted segment reporting: Mail in the Netherlands, Parcels (including Spring) and PostNL Other
  • 2018 outlook for underlying cash operating income of between €160 million and €190 million
  • expected margin in Parcels (including Spring) for 2018 of 7.5% to 9.5%

Revenue

Underlying cash operating income/margin

In € millions

2017

outlook 2018

2017

outlook 2018

Mail in the Netherlands

1,783

- mid single digit

125 (7.0%)

3% to 5%

Parcels

1,382

+ mid teens

140 (10.1%)

7.5% to 9.5%

PostNL Other / eliminations

(440)


(24)


Total

2,725

+ mid single digit

241

160 - 190

  • adjustment of the 2020 ambition for underlying cash operating income of around €25 million

We must acknowledge that implementation of the conclusions of the postal dialogue may impact the business drivers in Mail in the Netherlands, as well as the cost saving plans. We remain confident that the run-rate in cost savings will increase based on the robustness of the underlying plans, but the possible changes in the Dutch postal market make it difficult to predict the exact numbers and phasing of the anticipated cost savings in the years towards 2020. More visibility on the possible financial consequences is expected before the summer 2019, depending on the pace at which adjustment of regulation and other measures will be realised. For Parcels (including Spring) we remain fully focussed on achieving our ambition to maintain a solid underlying cash operating income margin with a growing revenue towards 2020.

For full reconciliation of the historical numbers of the reported segment results and the restated segment results, please refer to the Appendix to Q2 HY 2018 Reporting, available on our corporate website.

Published 6 August 2018

Warning about forward-looking statements:

By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that may occur in the future. These forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside of our control and impossible to predict and may cause actual results to differ materially from any future results expressed or implied. These forward-looking statements are based on current expectations, estimates, forecasts, analyses and projections about the industries in which we operate and management's beliefs and assumptions about possible future events. You are cautioned not to put undue reliance on these forward-looking statements, which only speak as of the date of this publication and are neither predictions nor guarantees of possible future events or circumstances. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

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